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    OB Case Study - Lenovo IBM

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    Nithi Hari
    Lenovo acquired IBM's personal computing business in 2005, bringing together two large international companies with different cultures, languages, and time zones. This created integration challenges, including differences in business customs, cross-border issues, language barriers, and disparities in salary structures. Leadership would need to address these cultural differences and encourage open communication to build a unified organizational culture and structure. While the merger created a global PC leader and cost savings, close monitoring would be required to manage implications such as differing success metrics and uncertainty during cultural integration.

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    OB Case Study - Lenovo IBM

    Uploaded by

    Nithi Hari
    28 views16 pages
    Lenovo acquired IBM's personal computing business in 2005, bringing together two large international companies with different cultures, languages, and time zones. This created integration challenges, including differences in business customs, cross-border issues, language barriers, and disparities in salary structures. Leadership would need to address these cultural differences and encourage open communication to build a unified organizational culture and structure. While the merger created a global PC leader and cost savings, close monitoring would be required to manage implications such as differing success metrics and uncertainty during cultural integration.

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    OB Case Study_Lenovo IBM

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    Lenovo acquired IBM's personal computing business in 2005, bringing together two large international companies with different cultures, languages, and time zones. This created integration challenges, including differences in business customs, cross-border issues, language barriers, and disparities in salary structures. Leadership would need to address these cultural differences and encourage open communication to build a unified organizational culture and structure. While the merger created a global PC leader and cost savings, close monitoring would be required to manage implications such as differing success metrics and uncertainty during cultural integration.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    28 views16 pages

    OB Case Study - Lenovo IBM

    Uploaded by

    Nithi Hari
    Lenovo acquired IBM's personal computing business in 2005, bringing together two large international companies with different cultures, languages, and time zones. This created integration challenges, including differences in business customs, cross-border issues, language barriers, and disparities in salary structures. Leadership would need to address these cultural differences and encourage open communication to build a unified organizational culture and structure. While the merger created a global PC leader and cost savings, close monitoring would be required to manage implications such as differing success metrics and uncertainty during cultural integration.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 16

    O R G A N I Z AT I O N A L 

    B E H AV I O R – I I
    C A S E S T U D Y
    Purpose and Scope

    Lenovo-IBM: Bridging Understand the major issues Analyse various alternatives. Provide Suggestions and
    Cultures, Languages, and Time and difference between the Implications.
    Zones Integration Challenges two company.
    (B)
    Lenovo Group Ltd

    • L e n o v o g r o u p l i m i t e d i s C h i n e s e M u l ti -
    N a ti o n a l Te c h n o l o g y   c o m p a n y.
    • Headquartered in Beijing ,  China.
    • L a u n c h e d i t s o w n P C ’s b r a n d –   1 9 9 0
    • C h i n a ’s P C M a r ke t l e a d e r w i t h 7 %
    M a r ke t   s h a r e .
    • O p e r a t e s A c r o s s A s i a Pa c i fi c , E u r o p e
    and America.
    • IBM was acquired by Lenovo in 2005.
    • Mission: To become one of the world’s great personal technology
    companies. We will accomplish this through Personal Computers,
    Convergence and Culture.
    MISSION & VISION
    • Vision: To create personal devices more people are inspired to own, a culture
    more people aspire to join and an enduring, trusted business that is well
    respected around the world.
    IBM

    • International Business Machines (IBM), is a


    global technology company that provides
    hardware, software, cloud-based services and
    cognitive computing.
    • Founded in 1911.
    • Headquartered in Armonk , New York , United
    States.
    •  More than 350,000 employees serving clients in
    170 countries.
    • Sold its Personal computer (ThinkPad/Think
    Centre) and x86-based server businesses
    to Lenovo-2005
    Mission and Vision
    • Mission: “To lead in the creation, development
    and manufacture of the industry’s most advanced
    information technologies, including computer
    systems, software, networking systems, storage
    devices and microelectronics. 

    • Vision:  “To be the world’s most successful and


    important information technology company.
    Successful in helping out customers apply
    technology to solve their problems. Successful in
    introducing this extraordinary technology to new
    customers. Important, because we will continue to
    be the basic resource of much of what is invested
    in this industry.”
    REASONS FOR
    MERGER
    LENOVO
     Wanted to acquire global
    market and grow in terms of
    technology.
    IBM 
     Was not successful in PC
    business and was
    continuously making losses.
    • Integration of two international • Difference in time zones
    different cultures
    Problems due • Cross border problems
    • Disparities in salary structure and
    redundancy in manpower 
    to Merger • Language barriers • Leadership and Management
    Challenges
    Leadership
    • Lenovo and IBM created powerful new global
    leader with leading products and brands.
    • They increased their customer value.
    • It hold on to 98% of their employees. 
    • Publicly traded and they are world’s third largest
    PC manufacturer.
    • Undisputed leader in enterprise PC design,
    productivity and cost of ownership.
    • Management team of IBM and Lenovo builds the
    strong ability to run a global business.
    ORGANIZATIONAL
    CULTURE
    •D i ff e r e n c e s   i n   A m e r i c a n   a n d   C h i n e s e   b u s i n e s s   c u s
    t o m s   a r e   l a r g e l y   i n fl u e n c e d   b y   d i ff e r e n c e s   i n   A m e r
    i c a n a n d C h i n e s e   m e n t a l i ti e s .
    •H i e r a r c h y i s i m p o r t a n t t o t h e C h i n e s e a n d r e s p e c t
    will be shown to those higher up in the structure.
    •L a n g u a g e b a r r i e r s l e d t o l e n g t h y m e e ti n g s a n d
    frequent misunderstandings  & Time zones.
    •D o m i n a ti o n s b y   U S o v e r C h i n e s e
    New Organizational
    Structure
    Suggestions
    • Facilitate programs which helps improving
    cultural differences. 
    • Should understand and encourage Chinese
    to voice their Opinions.
    • Encourage open communication channels
    and feedback mechanism.
    • Should create goals, values, vision and
    mission of the merged organization. 
    • Create a transition period.
    Analyse Cultural
    Differences 
    • Analyzing process flow charts that indicate how
    work gets completed
    • Conducting interviews with customers to
    determine differing customer perceptions of
    each organization
    • Conducting interviews with management and
    upper-level employees to determine managerial
    styles
    • Distributing surveys to employees with
    questions about accepted and unaccepted
    behaviors
    • Create a PC Power House
    and reinvent the global PC
    industry
    • Helped to stay competitive in
    the fast paced PC industry
    • Has seen as a global
    corporation
    • Cost savings through
    Economies of Scale
    • Global Marketing
    Network Shared risks
    • Best practices can be shared
    and implemented
    Advantages of Merging
    Implications

    • Cultural differences – includes how the two


    organizations define and measure success
    within the organization benefits employees
    enjoy, such as personal time and insurance.

    • The management styles and the overall


    attitude of the employees and managers
    toward business functions changes.

    • Creates uncertainty and change for roles that


    the employees are working in both the
    organizations.
    Thank you
    Group - 7

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